Hello everyone, I had few questions regarding the reimbursement process for mobile and petrol expenses for our employees. 1. Are these reimbursements paid separately from the regular salary payout? 2. Is it possible to include these components in the employees' payslips? 3. What is the standard practice that ensures legal compliance when processing reimbursements as part of the flexi component?

reimbursements should have proper receipts submitted and get them approved by the manager before the finance team reimburses them. Based on the reimbursement policy i.e. timeline for the payout, you can include reimbursement total paid monthly basis as a summary in salary slips. Some pay the reimbursements during the salary payout, so you can have multiple payments (1. salary + 2. total reimbursements) sent so that it is easier for the employees to tally or when they file the tax returns either pay separately or payout as once payment

Hi @Bakul Bhagwat Reimbursements can be/cannot be part of CTC, is some cases these allowances are treated as reimbursements to avoid taxes. If any of these reimbursements are part of CTC and is mentioned in the offer letter, then you will not need an approval from Manager. In some cases these reimbursements are treated over & above CTC, in which case you should draw a policy/guideline around it and define the limit. Payment will be based on actuals or the limit whichever is lesser. Yes, i have seen payslips in RazorPay where the reimbursements are also mentioned in Payslips. You could design the payslips on the need basis as well. As per compliance related - you will need to have all supporting documents to reimburse the amount.

Thanks Rashmi. On the design on the payslip, is it based on employer choice or is there a legal compliance on how the reimbursements get reflected

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@Bakul Bhagwat the compliance applies for the break-up or the structure of the components, you could design the payslip however you want. But No. of days present, UAN, Employee id, Employee Full name is mandate as part of payslip.

Thanks Rashmi, this helps